Chamber representatives meet RBI official
Industries in Coimbatore, which are hit by power cut in the State, are hopeful of getting one-year moratorium for repayment of term loan.
President of the Indian Chamber of Commerce and Industry, Coimbatore, R.R. Balasundharam and its former president D. Balasundaram met B. Mahapatra, Executive Director of Reserve Bank of India, in Mumbai on Thursday and submitted a memorandum requesting one-year moratorium.
The chamber president told The Hindu that the micro, small and medium-scale engineering enterprises and the foundries here were hit by long hours of power cut. The turnover of the industries had come down and it was expected to be just 50 per cent to 60 per cent of last year’s. The profitability had also declined. While the engineering units were operating diesel-based generators to continue operations when there was no power supply, the foundries were the worst hit. The power demand of foundries was high and hence, it would not be viable to operate generators.
The Chamber had appealed to the Union Finance Minister to advise commercial banks to permit one-year moratorium on repayment of term loans by these industries. Based on this, the State Level Bankers Committee of Tamil Nadu met in Chennai last month.
The chamber representatives met the RBI official and reiterated their demand, including waiver of interest. They also submitted to the RBI official the representations made by several other industrial associations here in this regard.
The textile industry here had made a similar representation and was granted the moratorium. The plea was mainly for the foundries and the MSMEs. With just two more months for the financial year to end, the one-year time should be provided immediately, he said.
The benefit to the industries in Coimbatore was expected to be Rs. 200 crore to Rs. 300 crore if they were granted the moratorium, he added.